Stephanie Link, Chief Investment Strategist at Hightower, argues that cybersecurity is a larger and more durable growth sector than AI because AI increases security risks that require robust defense spending. Despite recent tech selloffs, companies like Palo Alto Networks and Broadcom show strong revenue growth driven by cybersecurity and AI-related products, presenting buying opportunities. Link expects the cybersecurity sector to consolidate, favoring large companies that acquire smaller ones. She also highlights a favorable macroeconomic backdrop supporting growth, but warns that high valuations could lead to price volatility.
Zscaler CEO Jay Chaudhry emphasized that autonomous AI agents will soon outnumber human users on corporate networks, creating new cybersecurity challenges. Zscaler reported strong Q3 FY2026 results with 25% revenue growth but faced stock declines due...
Palo Alto Networks has evolved from a firewall vendor to a comprehensive AI-driven cybersecurity platform under CEO Nikesh Arora, focusing on platformization and integrating acquisitions like CyberArk and Chronosphere. The company surpassed $10 billi...
The First Trust NASDAQ Cybersecurity ETF (CIBR) gained 22% year-to-date by June 5, 2026, outperforming the S&P 500's 8% gain by about 2.6 times. This surge was largely driven by strong performances from top holdings like Palo Alto Networks, CrowdStri...
The WisdomTree Cybersecurity Fund (WCBR) rose about 20% year-to-date, outperforming the S&P 500's 8% gain, fueled by a shift in narrative that AI boosts cybersecurity spending rather than disrupts it. A March 2026 index methodology change refocused t...
The Themes Cybersecurity ETF (SPAM) has gained 27.54% in the first five months of 2026, significantly outperforming the S&P 500's 8.16% rise. This surge is driven by increased AI-related capital spending on cybersecurity infrastructure, as both attac...
